Does Itan require franchisees to participate in a gift card program?
Itan Franchise · 2025 FDDAnswer from 2025 FDD Document
ith local Laws. We must approve any changes prior to implementation.
- (c) Loyalty Program. You must fully participate and implement all required customer loyalty, rewards and other affinity programs designed to increase customer loyalty, generate new customers or improve overall demand for Salons.
- (d) Gift Card Program. You must participate in any gift card program we establish and honor all gift cards, even if purchased from us or another Salon. You may not sell gift cards we have not approved. We have the right to: (i) determine how gift card proceeds are divided or otherwise accounted for; (ii) require that gift card proceeds be paid to us or deposited into a trust account we control for subsequent disbursement to the Salons(s) where the gift card is redeemed; and (iii) retain proceeds from unredeemed gift cards.
- (e) Processing Customer Payments and Account Transfers. We currently provide electronic funds processing services on your behalf with respect to each customer who has signed a membership or other service agreement with you that authorizes electronic debiting of the customer's account for amounts owed to you. You agree to pay us a monthly EFT processing fee of $10 per month for this service. We will credit your Account for the amount of the customer payment less any applicable bank fees or charges.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 36)
What This Means (2025 FDD)
According to Itan's 2025 Franchise Disclosure Document, franchisees must participate in any gift card program that Itan establishes. Franchisees are also required to honor all gift cards, even those purchased from Itan or another Itan salon. However, franchisees may not sell gift cards that Itan has not approved.
Itan has the right to determine how gift card proceeds are divided or accounted for. Itan can also require that gift card proceeds be paid to them or deposited into a trust account controlled by Itan for disbursement to the Itan salons where the gift card is redeemed. Additionally, Itan retains the right to keep the proceeds from unredeemed gift cards.
Itan may periodically develop and implement gift card programs. Franchisees must fully participate in all programs Itan designates as mandatory. To participate, franchisees must comply with all policies and procedures Itan establishes for the program. They also must purchase or license and utilize all equipment, software, mobile applications, technology and others items Itan designates as being necessary for program participation and pay all associated fees and costs. Franchisees must pay Itan, their affiliate, or a third party Itan designates, all program fees, contributions or other amounts Itan requires for program participation.